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Technical Analysis of ETH/USD for Apr 9, 2020
Crypto Industry News:
The Bank of Korea has announced that it has launched a pilot program to assess the logistics of issuing digital currency of the central bank – or CBDC. While South Korea’s central bank does not plan to introduce such currency immediately, the pilot program will ensure it is ready in the face of changing market conditions.
After theoretical research carried out in February 2020, the pilot will cover the technological and legal review of CBDC emissions. It will last 22 months, until December 2021.
The first step is to define the requirements and the CBDC project that will run for five months until July 2020. It will overlap with the review of the technology required to implement the currency, which is scheduled from April to August.
A business process analysis will then be carried out, which will last until the end of 2020. Finally, in 2021, a 12-month compilation and testing of the CBDC pilot system should take place.
The announcement explains that the bank does not see the immediate need to issue a digital currency in South Korea, but rather that, based on research from other countries in this area, it wants to be prepared in case such a move becomes a necessity.
Technical Market Outlook:
The ETH/USD high located at the level of $175.00 is still an important target for bulls that are still trying to make use of the momentum behind the recent move up and move higher towards the level of $176.78, which is a technical resistance for the price. The Ethereum bulls are now consolidating the recent gains in a narrow range that looks like a Pennant pattern. On the other hand, if the bulls fail here, (there is a Bearish Engulfing candlestick pattern present on H4 time frame chart), then the next technical support is seen at the level of $156.24 – $153.46. Please notice the increasing momentum on ETH/USD on H4 time frame chart during the last move up.
Weekly Pivot Points:
WR3 – $180.45
WR2 – $163.97
WR1 – $154.32
Weekly Pivot – $137.76
WS1 – $127.39
WS2 – $112.43
WS3 – $101.19
Trading Recommendations:
The fear of the coronavirus consequences is very strong among the global investors and it rules on the financial markets. So far the global investors are not so keen to invest in cryptocurrency, because they are being perceived as risky assets. The larger time frame trend on Ethereum remains down and as long as the level of $214.67 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred.
The material has been provided by InstaForex Company – www.instaforex.com
